Betty The Restauranteur

[Ghel]

In order to foreclose, we have to follow proper procedures. Which means we have to wait until there's an event of default, then give them a month to remedy the default. We can foreclose for lack of insurance, for example, but we have to give them a month to get insurance first.

Also, what makes you think this inheritance is real? Can she have falsified the trustee letter?

I doubt it. The fax came from her accountant's office, and I trust her accountant more than her.

It's not like it matters, even if everything is paid off she'll just be in the same position in a year or two.

She'll be back in the same position in a month. Two at the outside. She'll do the same thing I've seen many customers do when they suddenly found themselves with a large sum of money they weren't accustomed to. She'll spend it on crap she doesn't need. Or the IRS will take it. But in any case, she'll be out the money within a few months, and back in the same boat she's in now, trying desperately to bail out water before she sinks.

[Tama]

This is way more exciting than any soap opera. :P

Also, what makes you think this inheritance is real? Can she have falsified the trustee letter?


It's not like it matters, even if everything is paid off she'll just be in the same position in a year or two.

[eltf177]

It sounds like it's time for the bank to foreclose on Betty. Just like Sketchy, the bank will continue losing money unless it cuts its losses now.

I agree with catcul, it's obvious Betty's not working with your bank and will just continue to let the situation spiral out of control...

[catcul]

It sounds like it's time for the bank to foreclose on Betty. Just like Sketchy, the bank will continue losing money unless it cuts its losses now.

[Ghel]

Things just got interesting. Not necessarily good, but interesting.

Betty called yesterday and told me that she'd received the inheritance check and deposited it at another bank. (I had no idea she had accounts at other banks, but that doesn't change much.) The bank put a hold on the check, so she wouldn't be able to make any payments until next week. And then she and her husband are going to be gone until Tuesday, so she won't be able to pay the real estate taxes until Wednesday. Could we put off starting the foreclosure until Wednesday?

I told her as long as she provided documentation that she'd received the money, we could wait an additional two days. So she had her accountant fax us a copy of the letter from the trustee and the check for over $70,000. Now we'll wait and see if she actually pays the real estate taxes on Wednesday.


Now, on the house... You may recall that back in February, Betty and her husband got insurance for the first time in many years, but it was immediately canceled because the check bounced. In May, they got insurance again (both times through the MN Fair Plan). The policy was dated May 5. We renewed their loan May 27. June 10, we received a lapse notice on their insurance. I called the MN Fair Plan, and they said the insurance was canceled effective May 5, because (surprise, surprise) the premium was never paid.

Looking at the timing on this, that means that when Betty and her husband came in to sign the renewal documents for their home loan, they knew that they hadn't paid the premiums on the insurance, but said nothing. One of the things I went over before having them sign the documents was that they'd done as we asked and paid their real estate taxes and purchased insurance on the house. I've suspected for a long time that Betty was making lies of omission, but now I have proof.

[Tolly]

Sheesh, what a colossal mess...

Betty's husband's behaviour is definitely very suss, it rather sounds like he's setting her up to fail. doesn't it?

I'm looking forward to the inevitable foreclosure post.

[mjr]

What a mess! Why is it I see Betty and her husband making no decision and forcing the bank to foreclose?

And of course this is all bank's fault! The fact that there are no repercussions on either Betty or her useless husband is just positive proof that trying to be honest is a suckers game...

I wouldn't necessarily say that Betty's husband is "useless". He could be "playing the game".

In other words, he's letting the restaurant fail, all the while looking like (at least to Betty) he wants to help.

Dunno.

[eltf177]

What a mess! Why is it I see Betty and her husband making no decision and forcing the bank to foreclose?

And of course this is all bank's fault! The fact that there are no repercussions on either Betty or her useless husband is just positive proof that trying to be honest is a suckers game...

[sstabeler]

Is there any way you could point it out to someone higher up? Because there's no legal reason why the bank can't change it's mind, and start reporting commerical loans to the bureaus. ( what they probably can't do is just report Betty's acocunt to the bureaus, while not reporting anybody else's account)

[Marmalady]

If the employees haven't been getting paid because of Betty's financial issues, it's likely that they won't be blaming the bank.

That's true - I had forgotten what the OP had said before, about their paychecks not being honoured, when I made the post.

[mjr]

Nah. Kitchen Nightmares. Let's see how she likes going 2 out of 3 falls with Gordon Ramsay.

I'm guessing it would be about how things went from Amy with Amy's Baking Company...

[VComps]

I think we're all missing a very important question here: Is the food at Betty's restaurant any good? ;-) Anyway, yeah, based on what Ghel is writing, it seems to me like Betty's husband wants the restaurant to fail. It seems like a money suck, anyway. Maybe she needs to be on "Restaurant Impossible".

Nah. Kitchen Nightmares. Let's see how she likes going 2 out of 3 falls with Gordon Ramsay.

[mjr]

I think we're all missing a very important question here: Is the food at Betty's restaurant any good?

;-)

Anyway, yeah, based on what Ghel is writing, it seems to me like Betty's husband wants the restaurant to fail.

It seems like a money suck, anyway. Maybe she needs to be on "Restaurant Impossible".

[Aragarthiel]

So... there's a foreclosure, the restaurant closes, the employees lose their jobs, and Betty and her husband can just say it was all the fault of the big nasty bank?

If the employees haven't been getting paid because of Betty's financial issues, it's likely that they won't be blaming the bank.

[notalwaysright]

It's always depressing to me when people are able to play the system and have no repercussions. Your bank has given them so many chances! My parents had a horrible time trying to do a short sale, the bank was very hard (impossible) to talk to and they repeatedly "lost" paperwork, the market was at it's worst, and they did have to pay taxes on the "forgiven" part of the loan. It probably would have been better to just let the bank take it away, but they were trying to do the right thing. That bank has been fined and had multiple lawsuits, so it wasn't just my parents not understanding, or doing things wrong.

And to see people get all these extensions, when then probably have no intention of paying, giving you guys the run-around, etc. Very aggravating.